Nonviolence versus capitalism

What is called capitalism can be many things.[1] It is typically a system in which a small number of large corporations dominate in most sectors of the economy. This is commonly called “monopoly capitalism” though “oligopolistic capitalism” would be more accurate. Capitalism is never a pure or free-standing system but in practice is always intertwined with other systems of power, including the state, patriarchy and the domination of nature. Free-market libertarians advocate a totally free market, perhaps maintained by a “minimal” state, but such a system is, as yet, hypothetical. “Capitalism” as discussed here refers to “actually existing capitalism.”[2]

Capitalism is not homogeneous. There are major differences between capitalist societies, with adaptations to local political, religious, cultural and other features. The use of the label “capitalism” can tend to obscure the variability in capitalist systems.

Capitalism has shown a remarkable capacity for regeneration in the face of crises. Some Marxist analysts have referred to today’s system as “late capitalism,”[3] but it is possible that it will, centuries hence, be known as “early capitalism.” As capitalist economies move from the industrial era to postindustrial society or information economy and move from national economies to a global economy, what people recognise as capitalism is transformed.

The word “capitalism” is used because the system is based on private control of capital, namely the means of production. To call this a free market system is a misleading euphemism. Markets are quite possible without private ownership. The “free” in “free market” implies freedom from state control, but actually it is the state that protects the conditions that make capitalist markets possible. So the term “capitalism” is used here, with the understanding that this refers to “actually existing capitalism” of the kind involving large corporations and state support rather than some libertarian ideal market system.

Problems with capitalism

Since problems with capitalism are well known, only a summary is given here. This is the “case against capitalism”; the generalisations do not apply to every circumstance or individual.

Social inequality is fostered within and between societies: the rich become richer and the poor become poorer. There is nothing in systems of exchange that promotes equality, and in practice countries or individuals that amass wealth can use the wealth to gain advantages over others. One of the rationales for government is to control and compensate for the tendency of markets to generate inequality.

If a person has a serious disability, they may be unable to produce as much as an able-bodied worker, or perhaps unable to obtain a job at all. In a society built around people, the person with a disability would be given support and training to become a productive member of society. Capitalism has no process for achieving this. Similarly, a country that is much poorer in natural resources or skills cannot compete with richer countries. Rather than helping that country, international capitalism keeps it in a dependent position.

Work is unsatisfying. Under capitalism, work is a means to an end, namely to get money to purchase goods and services, rather than an end in itself.

Workers are alienated from the product of their labour. Because decisions about products and methods of work are mostly made by employers, workers essentially become cogs in the workplace, often with little personal connection with the ultimate outcome of their labour. This is especially the case when there is a fine division of labour, as when workers in Malaysia produce one component of a car that is assembled in Korea and sold in the US.

Those who cannot obtain jobs suffer poverty and boredom. Markets do not guarantee jobs for everyone, and employers benefit from a “reserve labour force” of unemployed people, the existence of which keeps those with jobs in line. Since work is one of the things that gives many people their sense of identity, those who are unemployed suffer boredom, greater health problems and loss of motivation as well as poverty.

Consumers buy goods as substitute gratification in place of satisfying work and community life. Companies make money by selling goods and services and collectively promote a “consumer society.” Advertisers prey on people’s fears and inadequacies to encourage purchases.